India’s battery industry is moving from an import-dependent to a domestic manufacturing ecosystem. As per the Ministry of Heavy Industries, demand is expected to rise from 33 gigawatt-hours (GWh) in 2025 to 92 GWh in 2027 and increase 7X to 236 GWh by 2032. This will be driven by electric vehicles, renewable energy storage, and grid modernisation.
The PLI Catalyst: Localizing the Value Chain
To support this transition, the government has rolled out an ₹18,100 crore Production Linked Incentive Scheme for Advanced Chemistry Cell (ACC) batteries, with the goal of creating 50 GWh of domestic manufacturing capacity. The policy push goes beyond battery cell production.
Under the ACC PLI scheme, manufacturers are required to achieve 60% domestic value addition within five years, creating demand for locally produced battery materials and components. In addition, the government is working on a separate PLI scheme for battery components, which is expected to deepen localisation across the value chain.
Together, these initiatives could create a strong demand pipeline for companies across the value chain. Accordingly, this article discusses three battery chemicals players who are well-positioned to benefit from the growing battery chemical demand. All the stocks featured in this list have reported Q1FY27 earnings.
#1 Neogen Chemicals: Sub-brand Ionics Revenue Surges 280% on Lithium Electrolyte Push
Neogen Chemicals has strategically positioned itself as a critical player in the rapidly growing lithium-ion battery sector through its wholly-owned subsidiary, Neogen Ionics. The company is manufacturing advanced battery materials, specifically electrolytes and lithium electrolyte salts, to cater to both domestic and global energy storage and Electric Vehicle (EV) markets.
Battery Materials Expansion: Neogen Ionics Scales Operations
In Q1FY27, Neogen Ionics (the battery business) achieved its highest-ever quarterly revenue of ₹19 crore, up from ₹5 crore in Q1FY26. This revenue alone accounts for over 50% of the subsidiary’s entire FY26 revenue. This indicates rapid commercial acceleration of Lithium Salts and Electrolytes, which have officially commenced production at its Dahej SEZ plant.
₹1,795 Crore Capex Roadmap: Capacity Targets Across Sites
To meet the surging demand for battery materials, Neogen is executing a capacity expansion for Advanced Chemistry Cell battery materials across two key sites. The total estimated project cost is ₹1,795 crore. Of this, ₹1,298 crore has been cumulatively incurred to date.
By FY27, Neogen aims to have a total manufacturing capacity of 32,000 MT for Electrolytes and 5,500 Metric Tonne (MT) for Lithium Electrolyte Salts. The 2,000 MT Electrolytes plant at Dahej Special Economic Zone is fully commissioned. An additional 30,000 MT capacity is planned for the new Pakhajan site in FY27.
On the other hand, the 200 (Metric Tonne Per Annum) MTPA Lithium Electrolyte Salts plant is already operational, and the first approved material has been shipped to customers. Further, trial production is ongoing for an additional 1,300 MTPA, with another 1,000 MTPA slated for commissioning by H2FY27. Another 3,000 MT capacity is planned for the Pakhajan site.
Commercial Validation & Technology Licensing
Notably, the electrolytes facility is currently undergoing validation and product approvals by leading domestic battery manufacturers. For lithium electrolyte salts, Neogen has received provisional approvals from 4 major international customers and has successfully completed final site audits for 3 US-based electrolyte manufacturers.
All projects are supported by advanced Japanese technology through a licensing agreement signed with MUIS in 2021. Management views FY27 as a key year for commissioning and scaling up the battery materials project. It also reported a strong financial performance in Q1FY27.
Q1FY27 Financials: Neogen Defends Margins Amid ₹20.8Cr Finance Costs
Revenue increased 34% to ₹250.3 crore, driven by higher product volumes across core business lines. EBITDA (earnings before interest, tax, depreciation, and amortisation) increased 53% to ₹48.2 crore, and margin expanded 260 bps to 19.3%. Profit after tax (PAT) increased 67% to ₹17 crore.
While the financials were strong, the company’s PAT was moderated by higher finance costs, which rose by 64% year-on-year to ₹20.8 crore. Part of this was due to higher working capital tied up in ongoing capex and supply chain inflation. The Board of Directors has also approved raising up to ₹600 crore to fund the ongoing capacity addition.
#2 HEG: Inside HEG Subsidiary TACC’s 60,000-Ton Synthetic Anode Roadmap
HEG Limited is strategically expanding into the battery chemicals and materials sector through its wholly-owned subsidiary, The Advanced Carbon Company (TACC). The company is building a next-generation platform focused on advanced battery components for lithium-ion and other emerging cell chemistries.
Synthetic Graphite Scaling: The 60,000-Ton Target
HEG’s core battery material initiative is the manufacturing of high-capacity synthetic graphite anodes. Synthetic graphite is the preferred choice of cell manufacturers globally due to its superior technical capabilities, better homogeneity, and cost competitiveness, particularly for fast-charging applications.
To meet this demand, the company is building a 20,000-ton anode plant by FY27, with a clear vision to expand this capacity to 60,000 tons by FY32. This will make HEG one of the largest anode players in the world outside of China. Further, to cater to premium, high-end applications, HEG is developing silicon-doped synthetic graphite anodes.
These anodes offer higher (over 20%) energy density and improved performance, supporting larger battery capacities and faster charging rates. HEG has successfully piloted an in-house process to produce graphene, known for its strong electrical and thermal conductivity.
Offtake Discussions & Pilot Validation at Mandideep
TACC already operates a 200 MT pilot plant at Mandideep. Global cell makers have already approved TACC samples. It is currently in an advanced stage of off-take discussions with key automotive and cell-making customers for quantities exceeding 40,000 MT. Management noted that roughly 70% of the Phase I capacity is expected to be contracted soon.
Financial Outlook: Revenue Targets & EBITDA Margin Expectations
In its first year of operation (FY28), the anode project is expected to operate at 40-50% capacity utilisation. HEG estimates revenues of ₹600 to ₹700 crore, increasing to over ₹1,200 crore in the second year, and targets an EBITDA margin of about 35%. HEG is also entering the battery applications and storage market.
Q1FY27 Results: Core Revenue Rises 11% as Capacity Utilisation Hits 90%
HEG is in the process of separating its traditional graphite business and green technology company (HEG Green Tech), which includes TACC. In its consolidated financials, HEG reported revenue growth of 11% to ₹681 crore in Q1FY27. Operating profit increased 42.5% to ₹151 crore, while margins increased from 17% to 22%. PAT increased 23% to ₹122 crore.
Better price realisations, cost management, and over 90% capacity utilisation drove the growth. The company is also expanding its graphite electrodes capacity by 15,000 tonnes. This is on track to be commissioned by early 2028. Capacity utilisation is expected in the 90-95% range.
#3 Himadri Specialty Chemicals: Battery Materials Bet Aims for 3% Global LFP Market Share
Himadri Specialty chemicals is establishing a “New Energy Materials” platform focused on the lithium-ion battery value chain. It is focusing on lithium iron phosphate (LFP) chemistry, which is becoming a preferred choice for mass-market EVs, buses, and grid-scale storage due to its high thermal stability, safety, and cost efficiency.
Non-China LFP Expansion: The ₹4,800 Crore Roadmap
Himadri is establishing the first commercial LFP CAM facility globally outside of China. A 2,000 MTPA capacity is expected to be commissioned in Q3FY27. This will be followed by an expansion to 40,000 MTPA by FY28. This alone is projected to generate approximately ₹3,000 crore in topline revenue.
Himadri’s long-term goal over the next 5-6 years is to scale this capacity to 200,000 MTPA. It plans to invest ₹4,800 crore and capture a targeted 2% to 3% of the global LFP market. A 200 MTPA anode plant was commissioned in April 2026. This pilot plant is expected to generate ₹120-130 crore in revenue. Currently, it is supplying samples for customer approval.
Anode & Performance Additives: Diversifying the Battery Stack
To complement its active materials, Himadri has developed indigenous, high-value performance additives. Himadri is setting up India’s first commercial carbon nanotubes (CNT) plant with a 200 MTPA capacity. This is targeted for commissioning in Q4FY27. The company has also partnered with International Battery Company, Sicona Battery Technologies and Invati Creations.
Q1 Financials: EBITDA Up 33% as Margins Reach 22%
Financially, net revenue from operations increased 28% to ₹1,431.9 crore. This growth was driven by strong operational discipline and a continued shift in product mix toward higher-value segments. EBITDA increased 33.1% to ₹313.1 crore, while margins stood at 22%. PAT increased 27.4% to ₹228.4 crore.
Himadri Specialty chemicals Share Price
How the Three Companies Are Positioned in India’s Battery Materials Value Chain:-
| Particulars | Battery Focus | Key Capacity/Target | Near-Term Trigger |
| Neogen Chemicals | Electrolytes & Lithium Salts | 32,000 MT Electrolytes; 5,500 MT Salts by FY27 | Customer approvals & capacity ramp-up |
| HEG | Synthetic Graphite Anodes | 20,000 MT by FY27; 60,000 MT by FY32 | Offtake agreements & commercial production |
| Himadri Specialty | LFP Cathode Materials & Anodes | 40,000 MTPA LFP by FY28; 200,000 MTPA long term | LFP plant commissioning & customer approvals |
The table shows that all three companies are part of India’s battery ecosystem. But they operate in different segments of the value chain.
Valuation Check: Return Ratios vs Price Multiples
Himadri stands out for its strong Return on Capital Employed (ROCE) and Return on Equity (ROE). HEG and Neogen boast weaker return ratios. In terms of valuation, Neogen trades at a premium to both the industry median and its historical 3-year median P/E. HEG and Himadri trade at a discount to the industry but at a premium to the historical median.
| Particulars | Price-to-Earnings Multiple (X) | Return Ratios | |||
| Company | 3Y Median | Industry | ROE (%) | ROCE (%) | |
| Neogen chemicals | 160.0 | 102.3 | 31.9 | 3.6 | 6.5 |
| HEG | 35.8 | 34.5 | 37.8 | 7.4 | 8.4 |
| Himadri | 49.5 | 40.0 | 54.7 | 17.8 | 22.1 |
India’s battery manufacturing story is no longer limited to cell makers.
As localisation gathers pace, companies supplying electrolytes, anode materials, cathode materials, and advanced carbon products could become equally important beneficiaries. While Neogen, HEG, and Himadri operate at different points in the battery value chain, all three are investing ahead of demand.
Their ability to convert these investments into commercial production over the next few years will determine who emerges as the biggest winner. Keep these companies in your watchlist to analyse how they capture the industry tailwind.
Disclaimer
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were unavailable have we used an alternative, widely accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article. The website managers, their employees (s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities, or other related investments of issuers and/or companies discussed therein. The articles’ content and data interpretation are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.